How To Keep Track Of Business/Blog Income and Expenses
Can you believe the new year is right around the corner? I'm sure I've said this before but its just so hard to believe that 2014 is pretty much DONE. Anyways, lets talk about money. With the new year coming up so is creating new financial goals for your business and the dreaded tax season. I've found that the best way to be prepared for tax season + to help make reachable financial goals is to keep up with exactly what you're putting in + taking out of your business!
Sooo how do you do that? Well its simple...
KEEP TRACK OF EVERYTHING!
If you buy office supplies, keep the receipt and immediately log it when you get home. If you receive a new sale, write it down as soon as possible! For me, I make sure I keep all of my receipts in one place and use Fridays to do all of my budgeting for the week. There are a ton of accounting programs out there that can easily help you keep track of your money (I currently use Wave) but if you're just starting out I've found that it may be easuer for you to just keep track of everything on a simple spreadsheet.
Here is an example of how I used to keep track of my monthly income and expenses using a spread sheet.
I log the date the purchase was made (or when new money came in), the source (where the money came from or wen't to), the amount depending on whether it is an expense or income and notes. Notes are perfect for if you lose a receipt and can't remember what you bought or why you made that purchase. At the end of the spread sheet I have a "total" column. That is where I add up all of my expenses and add up all of my income to compare exactly how much went out versus how much actually came in.
Remember, the goal is to always bring in more than you spend. Each month look at your expense column + see where you can cut back. Maybe make coffee at home instead of going to Starbucks every morning. Or if you're like me, resist buying new office supplies when you clearly have enough as it is. Even if you're not a business owner, this is great for keeping up with personal expenses as well.
Ready to get started? Ive created a free printable for you! (if paper isn't your thing, feel free to create a similar form on Excel or Google Drive!)